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Scaling Lean: Mastering the Key Metrics for Startup Growth, by Ash Maurya
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Is your “big idea” worth pursuing? What if you could test your business model earlier in the process—before you’ve expended valuable time and resources?
You’ve talked to customers. You’ve identified problems that need solving, and maybe even built a minimum viable product. But now there’s a second bridge to cross. How do you tell whether your idea represents a viable business? Do you really have to go through the whole cycle of development, failure, iteration, tweak, repeat?
Scaling Lean offers an invaluable blueprint for modeling startup success. You’ll learn the essential metrics that measure the output of a working business model, give you the pulse of your company, communicate its health to investors, and enable you to make precise interventions when things go wrong. You’ll also learn how to:
· ballpark the viability of a business model using a simple five-minute back-of-the-envelope estimation.
· stop using current revenue as a measure of progress (it forces you to fly blind and, often, to overpromise to your shareholders) and instead embrace the metric of traction—which helps you identify the leading indicators for future business model growth.
· set progressive goals that set you up for exponential long-term success by implementing a staged 10X rollout strategy, like one employed by Facebook and Tesla.
· stop burying your breakthrough insights in failed experiments, but rather illuminate them using two-week LEAN sprints to quickly source, rank, and test ideas.
Ash Maurya, a serial entrepreneur and author of the startup cult classic Running Lean, pairs real-world examples of startups like Airbnb and Hubspot with techniques from the manufacturing world in this tactical handbook for scaling with maximum efficiency and efficacy. This is vital reading for any startup founder graduating from the incubator stage.
- Sales Rank: #45900 in Books
- Brand: Portfolio
- Published on: 2016-06-14
- Released on: 2016-06-14
- Original language: English
- Number of items: 1
- Dimensions: 8.38" h x 1.02" w x 8.31" l, 1.25 pounds
- Binding: Hardcover
- 304 pages
- Portfolio
Review
“A battle-tested approach to building companies that matter."
—Eric Ries, author of The Lean Startup
"A practical field guide to smarter decision-making at the early stages of a business."
—Brad Feld, managing director of Foundry Group
"A smart book for smart founders who seek to make an impact. It will forever change the way you see your project."
—Seth Godin, author of Linchpin
"Scaling Lean is the lost guide to adopting lean practices in a growing product team. You need this book!"
—Nir Eyal, author of Hooked
“If you want to build a successful business, you need to take an analytical approach. This book shows you how.”
—Gabriel Weinberg, coauthor of Traction
“We tend to teach entrepreneurship as if we are physicists only interested in the first femtosecond of The Big Bang, assuming success is assured after those crucial early moments. Scaling Lean is about what happens after your company’s Big Bang: how to perform the many customer experiments needed to win your startup the traction to escape its black holes.”
—Bob Metcalfe, Ethernet inventor, 3Com founder, UTAustin Professor of Innovation
About the Author
ASH MAURYA is the creator of the one-page business modeling tool Lean Canvas and the author of Running Lean. He regularly hosts sold-out workshops around the world, serves as a mentor to several accelerators, including TechStars, Accelerace, and Slingshot, and guest lectures at several universities, including MIT, Harvard, and the University of Texas, Austin. He serves on the advisory board of a number of startups, consults for new and established companies, and contributes to leading business publications and websites. He lives in Austin, Texas.
Most helpful customer reviews
5 of 5 people found the following review helpful.
Benefit from Ash Maurya's experience get your project to scale.
By Ken F
I run a number of lean startup seminars, primarily in the Colorado area, ones that cover the inception->product stage and ones that cover the "how to incubate new ideas in an existing enterprise". Lately the bulk of these have been based on Ash's Lean Canvas, a model that in my opinion exposes risk and next steps more effectively than Alex Osterwalder's BMC (also a great tool).
The big issue that comes up after companies run their initial tests and get a first working model is "what next" -- or more specifically, how do maintain the pace of innovation my organization requires after the initial excitement period, and how do I create an organization that supports this pace?
Ash's approach in Scaling Lean gives you ways to find your answers to several questions:
-- How do I know if I have traction? Specifically, how do I use real-world, non-vanity metrics to know what's working.
-- How do I know where my bottlenecks and contraints are? Specifically, what can I do to identify and make progress given the realities of my current situation?
-- How do I run effective experiments? What should I be testing, and what should I test first, based on my company's business model, size, etc.
-- Where should I focus? How do I add up all the above to know where to spent the limited resources (time, money, and people) I've got?
Scaling Lean answers these questions in an effective and concise way, or at least gives you the tools to be able to find the path to answering them yourself (which is what lean startup is all about). It's relatively short, and not filled with too many anecdotes- the real-world examples are well chosen and not just filler (like so many business books).
5 of 5 people found the following review helpful.
Finally! Someone Finally Taught Me How to Set Goals the Right Way...
By leviticus8908
For many years I struggled with setting goals--not just in business but in my personal life as well. I would agonize over trying to pick the right target and make the right plan only to change my goal almost immediately after confronting a painful dose of reality or even just finding new information.
My frustration with goal setting led me to adopt a "no goals" approach. I would only focus on the process and just "do the best that I could." This was better than trying to define the perfect goal but it still had a major shortcoming: I had no idea how to prioritize this idea over that. The "process-only" approach was good for developing my skills but not for "counting the costs." Sometimes I would execute projects very skillfully but they were doomed to go nowhere from the start.
Ash's solution is brilliant. He teaches you how to use the "Fermi Estimation" and "orders of magnitude" to quickly ballpark your idea and then work backwords to determine what inputs you need to get there. Immediately after doing the exercise you'll know which ideas are clearly not worth pursuing.
If you struggle with estimating revenue targets and timelines, you definitely need to read this book.
The Fermi Estimation is a method Ash teaches early in this book on how to create ballpark goals based on "orders of magnitude"
1 of 1 people found the following review helpful.
If the bible was a graphic porn novel on how to scale a business.
By Christopher G. Erckert
I bought the hardcover under the advice of others that the layout was a substantial part of the value. I would also agree, but if lugging a physical book keeps you from reading it, get the kindle edition, then buy the hardcover for reference at home.
In short, if you are responsible for a companies' growth, advise others on the topic, are thinking about jumping into your own biz or someone else's THIS IS REQUIRED READING. In fact, it is 1 of 2 books that I would put in the top 5 all time resources in print or the internet on the subject. The other is Running Lean by the same author and should be read first.
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